What Companies get Wrong about Global IT Outsourcing

Software outsourcing is no longer just for giant corporations. What started as a novel practice of US companies sending IT jobs to India in the 1990s has now become a US$88.9B industry that connects businesses with IT experts worldwide, from Belarus to Argentina. Companies of all sizes make use of this service to cut down on costs, bring innovation into the business, and open up more time to focus on core operations.

Although Global IT outsourcing is more than a passing trend, many business owners still shy away from hiring an outside team to help with their work. Here are some of the incorrect assumptions businesses make about software outsourcing.

1. Outsourcing means lower quality work

Many business owners or project managers might assume that developers educated outside of the US or Europe are less talented or less skilled than those back home. This assumption could not be further from the truth. The US comes in 26th in the world for IT talent, with top outsourcing countries like Brazil, Belarus, and Ukraine making the top twenty.

According to Deloitte, 78% of companies that use outsourcing services satisfy their expectations regarding the quality of the work. Not only can outsourcing lower costs, but it can also bring talent to your company that sees problems with new eyes and provides innovative solutions.

2. Outsourcing is only an option for giant corporations

Traditionally, articles about outsourcing used to speak exclusively of million dollar contracts with companies that had US$1B+ per year in revenue. While these companies still make up the majority of the deals, small businesses and startups can make use of outsourcing services, as well. Smaller companies might even benefit more than bigger corporations from the cost differential.

59% of companies use software outsourcing as a tool to cut costs while still developing revolutionary technology. Some entrepreneurs even suggest that outsourcing the early development of your prototype and MVP can help startups get products to market faster without sacrificing equity to a technical founder.